If I sell my house without buying another property, do I need to pay stamp duty when I'm ready to buy again?
If I sell my current flat (bought in 2014) to move abroad; if/when I return to the UK, would I need to pay stamp duty on a new house purchase?
Assuming no properties here are worth more than £300k but no less than £125k and the current rules are not going to change for the foreseeable future.
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Based on your question I assumed:
The house purchase in question is in England/Northern Ireland (based on your tag, and your mention of 'Stamp Duty' - it is known under a different name in Scotland and Wales)
You owned the flat you currently hold, either on a mortgage or outright
(Please edit the question if these assumptions are not true)
One-line summary: You will need to pay Stamp Duty Land Tax (SDLT), albeit likely at the standard rate.
The current first-time buyers relief on stamp duty comes with the following eligibility:
Rates if you’re buying your first home
You can claim a discount (relief) so you don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.
You’re eligible if:
you, and anyone else you’re buying with, are first-time buyers
you complete your purchase on or after 22 November 2017
As you, as per the assumptions, bought a home before, you are not eligible. Instead the standard rate apply, which at the time of writing is:
Zero for the first £125k
2% for the next £125k (i.e. up to £250k)
5% for the next £675k (i.e. up to £925k), and so on
Now assuming you did not make any home purchases when you are aboard, you do not need to pay the higher rate SDLT.
If you bought a home when you are aboard, and did not manage to sell it before you came back to the UK and buy a UK home, the higher rate SDLT applies. Though in this case the rules are slightly different (see this GOV.UK page):
There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.
Use this calculator to get an idea how much SDLT you will need to pay.
You’ll pay stamp duty like anyone else buying a house that’s their only property, but not as a first-time buyer. In the price range you’re talking about that will be 2% of anything you pay between £125K and £250K plus 5% of anything over £250K.
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